Underwriting turnaround intact; regulatory winds picking up

Q2 underwriting profit ₹99 Cr vs ₹-40 Cr LY; H1 ₹210 Cr vs ₹-24 Cr LY — tangible turnaround

Total GWP premium ₹5,275 Cr +19% YoY; fresh segment is stated subset, plausible within total

Delivered fresh 35% in Q2; prior target was 15-16% broader. 20% is cautious floor, not ambitious upgrade

Normalized ROE H1 at 15.1% vs 11.2% LY; loss ratio improvement indirect but credible, CISR figure unchallenged

Q2 underwriting profit ₹99 Cr vs loss ₹40 Cr LY — 5 consecutive qtrs improvement. CISR 98% vs prior high-loss-ratio periods. Structural fix confirmed.

Delivered 19% vs prior 15-16% guide. Fresh retail at 35% YoY. Management guides 20%+ forward but expects moderation from GST normalization.

Normalized ROE H1 at 15.1% vs 11.2% LY, on track for mid-teen target. Not upgraded, in line.

EoM caps (20% proposed), distribution reform, dark patterns, PIR all flagged as headwinds. Management cautious but compliant. New risk vs prior call.

Moderation will happen optically, but we look at policies sold and agent activations. Target 20%+ fresh growth consistently. GST impact now part of base for Q3/Q4.

35+ plans cater to different segments, pricing set by portfolio performance. Will await further regulation clarity. Not making intent changes now.

On new-to-insurance, we estimate ~40% market share, but may be wrong. Dark patterns, data requirements will apply to all players. No particular challenge seen.

D2C growing fast. Created digital SBU last year. AI bots processing 7.5M mins, <20% of human cost. Will adapt to dark pattern rules.

Mix of everything — price hike, volume, higher sum insured. Not putting finger on exact split.

Loss ratio improvement from combined effect of frequency/severity. Renewal book showing improvement, fresh at ~20% slice. Can't disclose separately.

~80% of claims from packages. Supreme Court drug-pricing order not notified yet. Will see impact when executed. Negotiating actively with hospitals.

Will give offline. Treat internal moves as renewal. Fresh market share ~40% estimate but apples-to-oranges until FY28.

Senior citizen commission reduced 15%–10%, other efficiencies taken. Multi-year policies: IGAAP upfront, IFRS deferred. No guidance on future regulation.

Will provide offline.

Quantified but forward-looking. Aspiration goal. Moderation expected near-term from GST normalization.

Normalized H1 ROE 15.1% (lower end of mid-teen). Track record improving. Regulatory costs (EoM, commissions) could pressure.

EoM 20% cap, commission structure reforms, PIR implementation, dark pattern rules all coming. Timing & impact unclear. Could force repricing or cost restructuring.

GST exemption for health insurance (Q2-Q4 FY26) boosted market 35%+. Normalization in Oct 2026 onwards expected to moderate growth. Management guides 20%+ but expects 'optically' lower growth.

Switch to 1/n basis reporting starting Q2 FY27 makes fresh/renewal/portability splits non-comparable to prior years. Star's 30% Q2 share cannot be directly compared to LY. Clarity restored only in FY28.

Surgical claims inflation ongoing. Drug pricing (Supreme Court order pending), stent pricing (caps ongoing) creating cost volatility. Management negotiating actively.

Focus on first-time buyers in semi-urban/rural geographies and younger cohorts (sub-40) increasing CAC. Not a crisis but margin headwind in medium term.